PORTLAND — The city has decided to rescind a policy requiring airport taxi owners and drivers to renew their licenses in person.

Eleven airport taxi owners and drivers from Somalia sued the city and director of the Portland International Jetport on Monday. They argued the new policy prevented them from using power of attorney to conduct their business and was a particular hardship for immigrants.

The city issued this statement today from Jetport Director Paul Bradbury: “It has become clear that expending resources on potentially costly litigation is not the best method to address the underlying issues stemming from the use of Powers of Attorney. The safety and legal concerns I have regarding possible transfers of these permits through Powers of Attorney may be better addressed by ordinance and policy changes.”

The policy was related to a decision to cap the number of taxi permits at 40. City officials said they wanted to ensure that permits were not passed from one person to another, preventing openings for new businesses that want a permit.

Officials now plan to come up with a new way to ensure a fair permitting process.